The SSI ministry recently agreed to dereserve the ready-made garments after the textile associations gave their suggestions in favour of the move, he said. Defending the government's stand on the issue of dereservation, Mr Abdullah said, "the SSI Minister has said she is willing to consider dereservation for any sector provided there is a strong demand in favour from the concerned industry".

"If there is a strong demand for dereservation of toy and leather from the industry, the SSI ministry will consider their dereservation," he said. On the impact of dereservation of ready-made garments, he said India had a tremendous advantage in the high-end segment of the textile market which it could leverage to increase exports in value terms.

Mr Abdullah said the Indian fashion industry had come of age and there was tremendous scope for value addition and increase in exports in value terms. "The overall exports are expected to grow at the targetted growth rate of 18 per cent. There is no reason to revise the target upwards as the current target is a healthy one," he said. Mr Abdullah said merchandise exports were expected to touch $43 billion as against $37 billion in 1999-2000.

"We have made good progress in identifying new areas for exports especially in Latin America," he said adding that chambers and export associations had helped increase exports to Latin America by almost 40 per cent.

"India is looking to export engineering goods, textiles, leather and handicrafts to Latin American countries," he added. The minister said India would also host the India Technology Mart in Argentina next year as part of its efforts to increase exports to the region.

Brazil had already envinced interest in increasing trade with India, particularly in the pharmaceutical sector, he said and added that the government would organise more buyer-seller meets to boost trade.